Odebrecht loses control of Atvos, one of the largest ethanol producers in Brazil, in court

Odebrecht loses control of ethanol producer Atvos in court to US funds Lone Star and Castlelake

After Odebrecht's court battle, justice endorses Lone Star and Castlelake funds to gain control of Atvos, one of the largest ethanol producers in Brazil. Atvos was in receivership. Looking for a job? Offshore and onshore vacancies for RJ and ES were announced by oil and gas company KEMPETRO Engenharia

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Last Wednesday (26/11) the São Paulo Court of Justice (TJ-SP) ruled in favor of the US fund, guaranteeing the transfer of shares acquired by Lone Star, which, according to the fund, will the right to control the sugar-energy company Atvos, belonging to the Odebrecht group.

The denied appeal guarantees the Natixis bank the validity of the sale of shares for US$ 5 million. Thus, Odebrecht must deliver the corporate books so that the transfer of shares is registered and the fund definitively assumes control of Atvos.

The ethanol producer follows its judicial recovery plan, according to the plan, control of Atvos can go to other creditors, mostly banks that have warrants that give them control. Under the new command, since the plan was approved, in May, work is already on the sale of Atvos to other groups.

Atvos filed for bankruptcy in May 2019, citing BRL 12 billion in debt. Lone Star, with US$ 40 billion in assets under management globally, controls a vehicle called LSF10Brazil, one of the indirect shareholders of Terra Nova Bioenergia Fundo de Investimento e Multiestratégia, represented by Planner Trustee. Wanted, Lone Star, Castlelake and Atvos declined to comment.

Odebrecht to sell stake in Braskem petrochemicals

Odebrecht announced that it will sell its entire stake in the petrochemical company to Braskem, a producer of thermoplastic resins. The news came through a document sent to the Securities and Exchange Commission (CVM).

Braskem informed in its press release that “ODB [Odebrecht] has started the preparatory acts to structure a process of private sale of up to the total interest held by it in the Company, by adopting the necessary measures to organize a process of this nature, with the support of legal and financial advisors”.

In addition to Odebrecht, another Braskem shareholder, Petrobras had already said it would sell its stake in the company.